India’s Q2 FY26 GDP Grows 8.2%, Driven by Strong Industry and Services Sectors

India’s economy posted a robust 8.2% GDP growth in the second quarter of fiscal year 2025–26 (July–September), according to data released by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). This marks a significant acceleration from 5.6% in Q2 FY25, indicating a resurgence in economic activity across key sectors.

Sector-Wise Performance: Industry and Services Drive Momentum

The strong GDP numbers were led by sharp expansions in the Secondary and Tertiary sectors, which together account for a large share of India’s economic output,

• Manufacturing grew by 9.1%, showing a resurgence in factory activity and industrial demand.
• Construction expanded at 7.2%, buoyed by infrastructure push and real estate recovery.
• The Services sector (Tertiary) posted 9.2% growth, with Financial, Real Estate and Professional Services recording an impressive 10.2% increase.
• Agriculture and Allied Activities grew at a modest 3.5%, constrained by weather variability.
• Utilities (Electricity, Gas, Water Supply) saw a 4.4% growth rate.

This broad-based growth reflects a well-balanced recovery led by both production and service-oriented sectors.

Private Consumption and Demand Rebound

A major highlight of the report is the resurgence in Private Final Consumption Expenditure (PFCE), which grew by 7.9% in Q2 FY26, compared to 6.4% in the same quarter last year. This signals reviving consumer sentiment and domestic demand, crucial for sustaining medium-term growth.

Rising household spending was likely supported by moderating inflation, stable employment in urban areas, and festive season consumption.

GDP in Absolute Terms: Strong Gains in Real and Nominal Terms

• Real GDP (Constant Prices) in Q2 FY26 stood at ₹48.63 lakh crore, up from ₹44.94 lakh crore in Q2 FY25.
• Nominal GDP (Current Prices) was estimated at ₹85.25 lakh crore, compared to ₹78.40 lakh crore last year, registering an 8.7% growth.
• For the first half of FY26 (April–September), Real GDP growth stood at 8.0%, while Nominal GDP rose 8.8%.

Economic Indicators and Base Year Update

The NSO emphasized that the Q2 estimates are derived from a wide range of real-time economic indicators, including,

• Agricultural output targets
• Industrial production (coal, cement, steel, etc.)
• Corporate financial results
• Transport data (railways, aviation, ports)
• GST collections and banking activity
• Government capital and revenue expenditure

Importantly, India’s GDP calculations are set to undergo a base year revision from 2011–12 to 2022–23, scheduled for release on February 27, 2026. This update will incorporate expanded datasets and refined methodologies, providing a more accurate and modernised measure of economic activity.

Key Takeaways

• India’s Q2 FY26 GDP growth: 8.2% (Real), 8.7% (Nominal).
• Real GDP: ₹48.63 lakh crore; Nominal GDP: ₹85.25 lakh crore.
• Strongest contributors: Manufacturing (9.1%), Services (9.2%), Construction (7.2%).
• PFCE grew 7.9%, indicating improving consumer sentiment.
• Agriculture lagged behind at 3.5% growth.
• Base year of GDP estimates to be revised to 2022–23 by February 2026.
• Data released by NSO, Ministry of Statistics and Programme Implementation.